Crescent Point Energy Trust, Calgary, (Toronto: CPG.UN) plans to acquire approximately 5,000 barrels of oil equivalent per day of oil producing assets in southwest Saskatchewan for total cash consideration of C$257 million. The acquisition is expected to close by mid-January. The acquisition will be funded from the trust's existing bank lines, the sale of up to 600 barrels of oil equivalent per day of non-core assets and through the issuance of 9.46 million subscription receipts. This purchase will create a new core area in southwest Saskatchewan with interests in four units that have large original oil in place of more than 760 million barrels, production that is 40% operated, operatorship in three of the four units, an approximately 50% average working interest, approximately 15.4 million barrels of oil equivalent of proved-plus-probable and 12.3 million barrels of proved reserves and a reserve-life index 6.7 years proved. The acquisition metrics are C$16.68 per proved-plus-probable barrel and C$20.89 per proved barrel of oil equivalent.
Recommended Reading
Vår Energi Hits Oil with Ringhorne North
2024-04-17 - Vår Energi’s North Sea discovery de-risks drilling prospects in the area and could be tied back to Balder area infrastructure.
E&P Highlights: March 11, 2024
2024-03-11 - Here’s a roundup of the latest E&P headlines, including a new bid round offshore Bangladesh and new contract awards.
Stena Evolution Upgrade Planned for Sparta Ops
2024-03-27 - The seventh-gen drillship will be upgraded with a 20,000-psi equipment package starting in 2026.
Rystad: More Deepwater Wells to be Drilled in 2024
2024-02-29 - Upstream majors dive into deeper and frontier waters while exploration budgets for 2024 remain flat.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.